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Carlsquare weekly market letter: When will Fed change the inflation target => stimulating the stock market?

Read the weekly letter here:

Carlsquare Weekly Letter 2 Nov 2022 CS


Carlsquare Weekly Letter

  • Today is the all-important Fed Day. The market expects a rate increase of 75 bps, but that’s not the most important thing. People speculate that we have the peak behind us. Can that be confirmed?
  • An outlier is that Fed will raise its goal on inflation from 2 to 3 per cent per year. That is not likely to happen yet, but Fed may start to discuss it soon to get out of the Fed trap with lower growth, higher inflation, and higher interest rates
  • The technical retracement continues. We have a set-up for a very volatile Fed Day today!
  • Below the performance in 2022 for all eleven S&P500 sectors can be seen, where IT (communication services) is the worst performer. A change of course from the Fed will bring money back to the IT sector.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

    Disclaimer: The information in this presentation is based on what the publisher Carlsquare deems to be reliable sources. However, we cannot guarantee its content. Nothing written in the presentation should be construed as a recommendation or solicitation to invest in any financial instrument, option or the like. Opinions and conclusions expressed in the presentation are intended for the recipient only. The content may not be copied, reproduced, quoted, or distributed to any other person. Carlsquare shall not be liable for any losses whatsoever caused by decisions made based on information contained in this presentation. Historical returns should not be taken as an indication of future returns. Changes in foreign currency may affect the value, price, or yield of an investment made abroad or in a foreign currency.

    The analysis is not directed at U.S. Persons (as that term is defined in Regulation S under the United States Securities Act and interpreted in the United States Investment Companies Act of 1940), nor may it be disseminated to such persons. The analysis is not intended for natural or legal persons where the distribution of the analysis to such persons would involve or entail a risk of violation of Swedish or foreign laws or regulations.


Carlsquare weekly market letter: When will Fed change the inflation target => stimulating the stock market?